Wednesday, January 29, 2014: According to a recent report published by TechSci, the Indian Li-ion batteries market is projected to grow at a CAGR of around 24 per cent during 2013-18 riding high on the success of consumer electronics and automotive applications. The “India Li-ion Batteries Market Forecast & Opportunities, 2018” cites that the demand for lithium ion batteries has increased exponentially in the country. It is the result of growing demand for smartphones and tablet PCs over the last few years.
India is one of the major Li-ion markets, exhibiting a significant double digit growth. The Li-ion batteries market is largely driven by consumer electronics segment due to high volume requirements in products like mobile devices, tablet PCs, laptops and cameras. Meanwhile, usage of Li-ion batteries in automobile sector is relatively at its nascent stage in India. The country’s southern region generates highest demand for Li-ion batteries on account of significantly growing IT, electronics and automobile sectors in the region.
It must be noted that India stands third, globally, when it comes to overall smartphone unit shipments. Meanwhile, leading market players such as Samsung and Nokia are also manufacturing their mobile phones in the country: something that is giving a boost to the demand for lithium ion batteries. Sony, Samsung SDI and Heter Electronics are the leading suppliers of Li-ion batteries in India. However, they are heavily dependent on Li-ion battery imports from China, Taiwan, Japan, and Korea.
Meanwhile, the government has set a target of around 5 to 7 million electric vehicles by 2020 in the country under the National Electric Mobility Mission Plan (NEMMP). To achieve the same, the government has introduced various tax exemptions for Li-ion batteries used in electric vehicles in the 12th five-year plan since Li-ion batteries are safer than conventional batteries when it comes to electric vehicles. Owing to this, the demand for automobile Li-ion batteries is also expected to increase exponentially during 2013-18.
